PHP Agency Reviews what new parents should know to look for when choosing a health insurance plan. Being a new parent is an exciting moment. There are all sorts of things that are going that you as a parent are making sure gets done the right way. One of those things is choosing a health insurance plan that is right for your baby. Deciphering health plans for your baby is not fun, but here are a few ways to navigate through your company’s health plans to make sure you are picking the right one for your family.
Begin by evaluating both parents’ coverages. Before anything else, investigate you and your partners healthcare coverages. Especially if you both get covered through your place of work. Pay attention to the different coverage tiers of the plans because some plans allow you to cover just yourself and one dependent, either a child or a spouse; others might require coverage for the whole family. “In some instances, it may be worth having two separate policies. If both parents are on the same policy, then adding a child can sometimes turn the policy into a family policy at a much, much higher cost,” says insurance agent Greg Sanders.
Look at the total cost of a given plan, not just the monthly premium. When you weigh the pros and cons of a plan, be sure to add in copays, deductibles, and all other medical fees that you are likely to have with a particular plan. Also be sure to factor in any possible visits made to the urgent care or the emergency room as well as lab tests and prescriptions. Finally, when it comes to out-of-pocket costs, you will want to consider if the pediatrician you would like to use and a nearby hospital are in-network, in case of emergency. Out of network can potentially cost more out of pocket money.
Consider enrolling in your companies flexible spending account plan for dependent care. If you know that you will need childcare, consider using a Dependent Care Flexible Spending Account (FSA) to get a break on the cost. FSAs are a use it or lose it type of account. If you know you are not going to have your baby that year, you might consider contributing less than if you had your baby before the time the years FSA ran out. Health Saving Account (HSA) is if you have a higher deductible, which you can contribute up to a certain amount of your pre-tax dollars. This money can be taken out tax free as long as it goes towards eligible medical expenses. While various health-care items are included, keep in mind that everyday costs like childcare, formula, or diapers are not considered medical expenses, it is important to know what is covered before deciding if an HSA is right for you.